What is title insurance, and why is it necessary?

• Title insurance is a type of insurance that protects property owners and lenders against financial loss due to defects in the title of the property. It ensures that the property ownership is clear of any liens, encumbrances, or title defects that may arise after the purchase. Title insurance is necessary because it provides peace of mind to both buyers and lenders by safeguarding their investment in the property.

What does a title company do?

• A title company plays a crucial role in real estate transactions by conducting thorough title searches, examining property records, and issuing title insurance policies. Additionally, title companies facilitate the closing process by coordinating with all parties involved, including buyers, sellers, real estate agents, lenders, and attorneys, to ensure a smooth and successful closing.

Do I need title insurance if I am paying cash for the property?

• Even if you are paying cash for the property, it is still recommended to purchase title insurance to protect your investment. Title insurance provides valuable coverage against unforeseen title defects or claims that may arise after the purchase, offering peace of mind to property owners.

What is a closing agent, and what do they do?

• A closing agent, also known as an escrow officer or settlement agent, is responsible for overseeing the real estate closing process. Their duties include preparing and reviewing closing documents, coordinating with all parties involved, collecting and disbursing funds, and ensuring that all legal requirements are met for the transfer of ownership.

Can a title company assist with the closing process for remote or online transactions?

• Yes, many title companies offer online or remote closing services to accommodate clients who may not be able to attend a traditional in-person closing. 

Is there an age requirement for individuals listed on the title of a property?

• Yes, individuals listed on the title of a property typically must be 18 years of age or older at the time of the property's purchase or transfer. This requirement ensures that all parties involved have the legal capacity to enter into contracts and assume responsibilities associated with property ownership.

What happens during the closing process, and what should I expect as a buyer or seller?

• The closing process, also known as settlement, is the final step in a real estate transaction where ownership of the property is transferred from the seller to the buyer. During the closing, both parties, along with their agents and any necessary representatives, meet to sign the required documents and complete the transaction.

• As a buyer, you can expect to review and sign various documents related to the purchase, including the HUD/Closing Disclosure and loan documents (if applicable). You'll also need to bring 2 forms of ID to closing along with proof of wire transfer for any remaining funds due at closing, known as your cash to close.

• As a seller, you'll review and sign documents such as the deed transferring ownership of the property to the buyer, any required disclosure statements, and the settlement statement outlining the financial details of the transaction. You'll also need to provide keys, garage door openers, and any other necessary items to the buyer per the contract.

• Additionally, both parties may need to pay closing costs, which can include fees for title insurance, attorney services, recording fees, and prorated property taxes or homeowners association dues. Once all documents are signed, funds are disbursed, and the closing is complete, the buyer receives the keys to the property, seller received their proceeds, and ownership is officially transferred.